Fixed Asset Management

Kansas State University has a significant investment in its fixed assets, which are comprised of land, buildings, and fixed and moveable equipment. These fixed assets are used to carry on the University’s primary missions of instruction, research and public service. An item is considered a fixed (or capital) asset if it is owned or considered owned by the university, is held for operations for more than one year and its acquisition value is $5,000 or more individually or as an operating unit for equipment. This includes all items gifted to the University as well as purchases made with donated funds. All fixed assets are owned or deemed accountable by the University and not a specific individual, department or other operating unit.

Fixed assets are recorded at cost at date of acquisition for purchased items. Donated items are recorded at fair market value on the date received. Depreciation is calculated on the straight-line basis over the estimated useful life of each class of depreciable asset. Estimated lives range from 5 to 50 years. Since land does not have an estimated useful life, it is not depreciated.

Guidelines have been established to help university departments and personnel ensure that the University’s fixed assets are acquired, safeguarded, controlled, disposed of, and accounted for in accordance with state and federal regulations, audit requirements, and generally accepted accounting principles.